Indala Does It Again…

Second Straight Year of Record Growth at Silicon Valley-based Access-Control Company

San Jose, CA (December 20, 2004) Indala Corporation, an industry leading manufacturer of contact and contactless cards, tags, readers, and core electronics modules for physical and logical access control announced that it has achieved record growth in 2004 for the second consecutive year. Joe Grillo, chief executive officer of Indala parent company, Identification Technology Group (ITG), and Marc Freundlich, Indala president, made the announcement during a “town-hall” employee meeting at the Company’s San Jose headquarters.

Mr. Grillo credited Indala’s impressive growth to a number of factors. “First and foremost, Indala’s experienced staff is truly dedicated to customer needs and is backed by an innovative management team. This year Indala launched several successful products in the traditional proximity product line and developed unique identification solutions to support the growing demand for logical access-control solutions for companies such as Microsoft and Procter & Gamble,” he added.

“Our performance in 2004 clearly demonstrates increased customer demand for high quality identification products and services, fast delivery, and exceptional customer support,” said Mr. Freundlich. “With customized ID solutions available in both low and high frequency RFID product lines, Indala can advise, deliver, and manage enterprise ID securely and quickly. And with the recent acquisition of MR Access, (now Indala Ltd.) which increases our product range, customer portfolio, and production capacity, we fully expect 2005 to be another strong year for Indala.”

About INDALA

Indala Corporation is a leading security technology company that develops and manufactures 125 kHz proximity; 13.56 MHz contactless and contact smart cards; and associated readers for physical and network access-control applications. Indala manufactures the highest quality RFID product lines including FlexPass® Series, CX Series CASI®-compatible cards, Cotag® long range RFID, and MIFARE®/DESFire® high frequency products. Indala is renowned for delivering highly secure customized card access solutions for government and commercial applications around the world. Founded in 1985, Indala’s installed customer base exceeds 100 million cards and two million readers. Indala was acquired by ASSA ABLOY in November of 2001. The Company’s headquarters is located in San Jose, California. For more information, call 408-361-4700 or visit the Indala website at www.indala.com.

INDALA Contact: Marc Freundlich Phone: 408-361-4700 Fax: 408-361-4701 Email: mfreundlich@indala.com